Author: Multifamily News

Multifamily Rents Are Falling At Some Of The Lowest-Priced Class C Properties

There are 12 markets where Class C rents fell at least 6% over the last year. The new supply of class A units are pulling renters away from class B properties…..and on down the chain.

Class C rent growth topped 5% in 18 of the nation’s 150 largest metro areas. All of these markets are regions with little new supply.

Excess supply helped slow rent increases in previous cycles:

Source: Jay Parsons & The Joint Center For Housing Studies

Student Housing February 2024 Preleasing Data

January data continues to show record high preleasing for the 2024 school year:

Snapshot at the top 32 Power 5 schools with enrollment over 25,000 and the most dedicated off-campus student housing beds:

Yardi Matrix anticipates delivery of more than 46,000 new student housing beds in 2024, an increase from the 35,610 beds delivered last year, but expects supply will fall over the next five years to below the long-term average of 36,322 beds per year dating back to 2010.

Student housing investment activity was down last year, with only 76 student housing properties changing hands, compared to an average of 205 in 2021 and 2022. This resulted in a lower price per bed of $75,410 last year, compared with more than $80,000 per bed during the previous five years.

Source: Yield PRO & Yardi Matrix

Hickory, NC Ranked Least Expensive Metro To Live In The United States

The U.S. News & World Report list is based on the median gross rent and annual household costs for mortgage-paying homeowners of each metro area.

Spartanburg, SC (11) Greenville, SC (12) and Winston-Salem, NC (16) also made the top 25:

  1. Hickory, NC
  2. Youngstown, OH
  3. Huntington, WV & Ashland, KY
  4. Huntsville, AL
  5. Fort Wayne, IN
  6. Beaumont, TX
  7. Peoria, IL
  8. Green Bay, WI
  9. Quad Cities, IA
  10. Knoxville, TN
  11. Spartanburg, SC
  12. Greenville, SC
  13. Fayetteville, AR
  14. South Bend, IN
  15. Brownsville, TX
  16. Winston-Salem, NC
  17. Chattanooga, TN
  18. Lafayette, LA
  19. Springfield, MO
  20. Tulsa, OK
  21. Toledo, OH
  22. Dayton, OH
  23. Little Rock, AR
  24. Pittsburg, PA
  25. Montgomery, AL

Source: U.S. News & World Report

Highest Multifamily Rent Growth Markets Over Next 5 Years & The “Next” Austin, TX

Markerr uses machine-learning to accumulate data on real estate markets, and they released their forecast for the markets with the strongest Compound Annual Growth Rate for multifamily rents through 2028:

  1. Knoxville, TN – 4.4%
  2. Portland, ME – 4.3%
  3. Greenville, SC – 4.3%
  4. Syracuse, NY – 4.2%
  5. Palm Bay, FL – 4.0%
  6. Winston-Salem, NC – 3.8%
  7. Allentown, PA – 3.7%
  8. Greensboro, NC – 3.7%
  9. Albany, NY – 3.7%
  10. Wichita, KA – 3.6%

Markerr analyzed several metrics including population, education, growth of tech workers, and salaried workers in 2011 and compared it to today to try and find where the “next” Austin, TX will be. Raleigh, NC lead the country as the top candidate:

  1. Raleigh, NC
  2. Provo, UT
  3. Madison, WI
  4. Kansas City, KS
  5. Colorado Spring, CO

This week Neal Bawa of Grocapitus, a multifamily data analyst, also named Raleigh, NC as his number 1 multifamily market to invest in 2024 based on the outlook over the next 5 to 7 years.

Source: Markerr and Multifamily University